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Creating an Umbrella of Financial Security | Financial Planning Tips

Creating an Umbrella of Financial Security

You know what they say, when it rains, it pours, especially when talking about unexpected expenses. There are certain times in your life when your bank account seems to crash down around you. The kids are telling you that their teacher is requiring them to buy an expensive art set. At the same time, your wife gets a flat tire in the middle of nowhere, meaning you have to pay for a new tire. On your way home you rear-end another car in front of you. To add insult to injury, your mailbox is full of bills to be paid in the coming weeks.

This is what they mean when they say that when it rains, it pours. Many people can relate to that feeling. It can come in any aspect of your life: friends, fame, and even financially good times. The financial side is what seems to hit home the hardest.

The question becomes how do you keep the rain from coming in when the financial storm clouds gather? Fortunately, there are a number of ways to do this. Sometimes it involves patching up the holes. In other cases it requires throwing away the old one and buying a better, bigger, and cheaper umbrella for the future.

Patching the Holes

Patching the holes begins with patching your bank account. It’s important to start saving money after the last drop has fallen. Although the rain is gone for now, there’s always the assurance of more in the future. Begin saving money from every pay check, even if all you can afford at first is a dollar here and there. Dollars accumulate quickly, especially when your times of financial sunlight begin to appear.

Here are a few ideas of how you can save additional money on things you’re already paying for. First, take a look at your grocery bill. Carefully examine what you’re buying the most and see if you can’t find it cheaper. It’s easy to get into the habit of shopping for food at a store that’s comfortable and known. You pay for convenience by dropping by a family name brand.

The problem with these name brands is that they aren’t always the cheapest. Start looking around you for deals. Check the junk mail you get for deals at other supermarkets and compare their prices to the ones you are normally paying. If you can find things cheaper elsewhere, do your shopping there.

Another idea is to get involved in rewards programs. Many supermarkets offer you rewards points for every dollar you spend. The more you spend, the more rewards you get. They also often offer you discounted prices for being a member. Don’t feel ashamed about multiple memberships to different stores. When you’re shopping around, you want to make sure you get the best prices around.

You can also reduce the costs of certain entertainment. If you love movies, you can avoid buying them by renting them from Redbox. A dollar a weekend is significantly better than paying $20 for a DVD or theater tickets. You’ll be surprised how much more you save by reducing your spending through rentals.

Last idea for this post, only purchase as much gas as you need to get through the next few days. The less gas you have in your tank, the less tempted you will be to drive excessively. It will also encourage you and your family to use other means of transportation to get to places nearby.

There is an overabundance of ways to reduce your spending if you think outside of the box and outside your comfort zone. It might require a bit more work, but the work will pay off when the storm clouds start rolling in again.

Replacing the Umbrella

Sometimes, you’re just going to have to replace the entire unit. If your car is costing you too much to insure and pay off, it might be worth selling and getting a new car.

If your apartment is too much to afford every day, consider looking for a better priced apartment elsewhere. In that same vein, if you live thirty minutes to an hour away from work, consider moving to a closer location. You’ll spend less gas.

Evaluate the price you are currently paying for insurance and see if there are better options out there for you. Find out what other cable and internet providers are charging for their service and change when prices are cheaper.

Consider going for a non-2 year contract cell phone plan. There are plenty of new plans out there that are charging tens of dollars less than your big 3 cell phone companies.

The point of replacing the umbrella is finding things that are done cheaper elsewhere and becoming a part of that. Some things get too expensive for the sake of a name, not a quality. Don’t fall victim to their schemes. Save money at the right places.

Once you patch the holes or replace the umbrella, let the rain come. You’re better ready for them this time around. And when the rain becomes a bit too much, there’s always a payday loan waiting just around the corner to help you stop those last few drops from coming through.

Payday loans are short-term loans that get you the money you need when you need it. Payday loans are affordable and helpful tools that act as extensions or emergency patches to your umbrella of financial security.

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